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Clive Palmer cannot be trusted to deliver on reforms

Peter Reith

Conflict of interest: Clive Palmer owes an explanation to the Parliament and to the people. Photo: Alex Ellinghausen

The idea that Clive Palmer and his PUPs would be a positive force for good policy has taken a beating. The other senators are worth talking to and negotiating with but I have grave doubts about the government dealing with Palmer. He constantly contradicts himself, revels in creating uncertainty and lives for personal aggrandisement and opposition to the Coalition. The real betrayal of the Australian people is that by his actions, to date, any hope of support from Palmer for economic reforms is fading fast.

No one should forget the TV clips of Palmer organising last week’s Senate mayhem. And more importantly, no one should forget that only as recently as November, Palmer said “he would be abstaining from voting in the House of Representatives on the carbon tax repeal legislation to avoid a potential conflict of interest”. He then said, “I’m applying company standards and stepping out of this debate as there’s currently a potential conflict of interest”. If the issue was not resolved by July the PUP senators will “deal with it”. Sunday's press reported Palmer’s office saying that although the amendments agreed over the weekend looked fine “it would be up to Mr Palmer to approve them”.

Mr Palmer owes an explanation to the Parliament and to the people. Conflict of interest matters are not trifling issues. Palmer’s words and behaviour demand a much higher standard than he has shown so far. But he is not just breaching basic standards.

Last week Palmer concocted a series of nonsense excuses for opposing the repeal of the carbon tax. And when Palmer refused to answer questions about his integrity, attacked fiscal reform and promoted new red tape it seemed obvious it’s unlikely he can be trusted on anything.

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If Palmer pulls another stunt this week, Abbott will find it hard to trust him again.

Labor will hide behind Palmer and hope that its reward for silence will be of political benefit to Labor, albeit at the expense of the public interest.

The consequence is reform in paralysis, as recently warned of by the Reserve Bank. A future Labor government is not about to champion the reforms needed: Labor is now more anti-reform than at any time in the past 30 years. Last week Labor refused to even support budget measures they proposed while in government last year. The idea of serious reforms, such as Paul Keating-style labour market reform, is off Labor’s agenda.

Labor cannot even consider reforms in response to the evidence piling up in the Royal Commission on union governance. Only recently Bill Shorten said union governance was limited to a few rogue unions. But that claim did not last long once the Royal Commission started to uncover widespread malpractice. Shorten can’t even condemn union intimidation and thuggery so he said he awaits the Royal Commission’s findings. This tactic is also being used so as not to embarrass Daniel Andrews, Labor’s Victorian leader who is closely aligned to the CFMEU and facing a November state election. After the state election and before the Royal Commission recommendations, Labor apparatchiks will be doing everything they can to discredit the commission and dismiss its recommendations on the grounds it was all a political set-up.

Labor’s win in 2007 was the green light to the unions just as it became a green light to people-smugglers. And these are not one-off events. Union thuggery, intimidation, bad behaviour, and pressuring employers are far too common in industries such as resources and building. Unions in Western Australia have been playing their part in slowly killing off the prospects of more mining investment because Australia’s cost structure has become out of step with international costs. The same applies in Queensland where investments for new coal seam gas deposits are being shelved.

The construction industry has daily confrontations with lawlessness in the Melbourne CBD. The CFMEU has also imposed huge costs on hospitals and infrastructure. Manufacturing has taken a beating from the higher dollar in recent years and there are continuing job losses. But manufacturing has also been undermined by aggressive unions that would prefer to lose an industry than lose their vice-like grip over the bosses.

So while the political games grabbed the headlines last week, the more important news was that unemployment was up to 6 per cent. In the past 12 months employment rose by only 0.9 per cent but the working-age population (WAP) increased at double that rate (1.8 per cent). Before Labor’s Fair Work legislation, employment was faster than the WAP. Abbott will not reach his target of one million jobs within five years. Australia needs serious reforms; the worry is that our political system seems unlikely to deliver.

Peter Reith was a minister in the Howard government and is a Fairfax columnist.

210 comments so far

Abbott's calling out anybody on matters of trust and consistency is hilarious. And reform is not ripping something apart and then letting the dogs in to see what they can do with the carcass. Every bit of chaos that Palmer causes derives directly from the deceit and illegitimacy of Abbott's leadership. Abbott and his cast of clowns and fools are merely reaping what they have sown.

Commenter

GOV

Location

Sydney

Date and time

July 15, 2014, 12:50AM

Abbott did not buy his way into parliament. Nor does he have hundreds of millions of dollars of financial interests in industries directly affected by legislation on which he votes.

Commenter

Spaniel

Date and time

July 15, 2014, 2:42AM

GOV, when you make a comment of critique with broad brush statements & no substance, it lacks the credibility who have yourself criticised.Palmer is shrewd, however has shown so far get is only self serving, with Clive Palmer as his okay agenda. "My opinion" is, Palmer and his few blind mice would lose their seats in a crashing result when there is next an election.

Commenter

Pistol Pete

Date and time

July 15, 2014, 3:39AM

You conveniently forget Peter that the polls are disasterous for Abbott even before the circus of Palmer became more evident.The budget is a disaster, and shows Abbot for what he is, a lying deceitful man that has no mandate for most of his reforms( which really are not reforms, but a slap in the face of lower and middle Australia)

Commenter

favela liberal

Date and time

July 15, 2014, 5:22AM

Major reforms in Australia should not be partisan - that is the problem with politics in Australia. Everyone has a vested interest in doing major reforms right and doing it fair. The problem with industrial relations reform started with John Howard and it started with Workchoices. It was only natural that once Labor was in government they would swing that one all the way back in favour. Now we have Tony Abbott, the self-proclaimed non-negotiator, expecting to change aspects of the entire political landscape in Australia through single party reforms and no consultation based on some "mandate". This isn't England and he isn't Thatcher. How many people who voted for him understood entirely what his "vision" for Australia was during the election? I am sorry, but it must be a very bitter pill to swallow coming from an opposition of "no" to a government being told the exact same thing. How much time does the Australian public need to waste recycling governments who can't make the reforms required because they can't work with others in parliament. The Coalition and ALP both have decent policy, but there are things they are both doing along partisan lines that are disrupting the very core of Australian values and damaging this country.

Commenter

Deano

Date and time

July 15, 2014, 5:32AM

Spaniel, yes Palmer paid his way into government. Abbott lied his way into government. They are both of the same tarred brush. There is not much future ahead with those two in power.

Commenter

Favela Liberal

Date and time

July 15, 2014, 5:45AM

@Gov. I seem to recall this piece being about trusting Clive. Yes politicians stretch the truth, anybody that expects politicians to be completely truthful is foolish. Abbott went to the last election on the platform on reducing the debt, stopping the boats and get rid of the carbon tax. I can't see anywhere were he has contradicted himself. We keep hearing about no cuts to the ABC, SBS blah blah before the election. He was repeating day after day and reducing debt and you can't do that without cutting wasteful spending on the broadcaster. As for Clive he has a bigger agenda at play, not sure if it's revenge, attention or he is scheming his way to something bigger. At first it was funny, however the novelty is over. Start acting like a MP or get out and let someone who wants to make a difference in.

Commenter

Piped Piper

Date and time

July 15, 2014, 5:47AM

Feano I dont agree, Abbott is too far right and wants to basically abolish the safety net for sections of the community. I don't agree with Abbott's education reforms where a veterinary degree can cost 250,000. Abbott has created a huge divide with his various proposed reforms that are basically anti environment and pro corporate.The public smells a rat with Abbott, and Palmer is tapping into that for his own advantage.

Commenter

Favela Liberal

Date and time

July 15, 2014, 5:57AM

If unhappy with the previous opposition (now the government) or the current one, we can call it out - and the same with Clive Palmer and the PUP; I think many of us have not been entirely consistent in this issue.On this blog-site, many of us have addressed the issue of the Coalition's lies - specifically the 2013 election promises.For the Coalition, there is nowhere to hide - and no obfuscation is possible.So now, where to from here?I accept it may be different for others; for me, it is a matter of choosing between two evils - I prefer an attempt to address the economic challenges, rather than sticking to those lies and fatuous promises - and watching the economy tank (because the more appropriate economic decisions were avoided, in order not to break unrealistic promises).If the electorate wants to punish the Coalition in 2016 - for their lies and the unfair nature of this budget - then rip into it.If they choose to sack the Coalition in 2016, do it well enough for Labor to have an absolute majority in both houses.At least the government can then get into dealing with our considerable challenges - without having to stuff around and negotiate things through the Senate.Give either side of politics a clear run - so they can be bold and definite in their decisions; not these half-baked compromises.That said, regarding the Coalition's current budget - and the next two; in my opinion, no one will escape the pain - for those who appear to have escaped with this budget, their turn to feel the pain will come.Clearly, this budget is simply part one - of a rolling maul of 'structural adjustments' planned for release over the years head.

Commenter

Howe Synnott

Location

Sydney

Date and time

July 15, 2014, 5:59AM

Pied Piper, Abbott took lying to a new low level.The Public cant stand that. The truth is only in the continuous disastrous polls for Abbott.

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